Am I entering Owner's Draw correctly?
I'm a sole member LLC.
I've got an "Owner's Equity" equity account set up and any time I Take money from my pocket and spend it on the company, I log it in this account and categorize it properly for tracking purposes.
When I want to take money from the company, I created an "Owner Draw" equity account. Do I write myself a check and use the "Owner Draw" account? I noticed that if I do that, the draw account goes into a negative balance. I feel like I should not have created a draw account and instead, wrote a check against the "Owner's Equity" account.
Which is correct?
Thanks!
